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Muslim groups reject new terror laws

Leading members of the Muslim community have dismissed planned new terror laws, saying they are a response to a trumped-up threat.

A statement signed by a large number of Muslim sheiks, community leaders, activists and organisations argues there is no evidence to substantiate the threat the federal government says is posed by radicalised Muslims returning from Iraq and Syria.

It comes as Prime Minister Tony Abbott and Attorney-General George Brandis set about selling their proposed new terror laws to the Muslim community.

It also comes the same day the Islamic State jihadist group posted a video showing the apparent execution of captured American journalist James Foley.

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The government is proposing a range of new terror laws which, among much else, make it an offence to travel to certain locations overseas.

The statement, released to the media and also posted on the Islam in Australia website, says the primary basis of the new laws was a "trumped-up threat" from radicalised Muslims returning from Iraq or Syria.

"There is no solid evidence to substantiate this threat," it says.

"Rather, racist caricatures of Muslims as backwards, prone to violence and inherently problematic are being exploited.

"It is instructive that similar issues about Australian troops travelling abroad to fight or Jews travelling to train or fight with the Israeli Defence Force are simply never raised."

The statement also notes that the "hysterical rhetoric" of government ministers contrasts with the official threat level that hadn't changed since 2001.

"The Muslim community is being asked to sign-off on laws and policies that have already been decided," the statement says.

It goes on to say Prime Minister Tony Abbott was seeking approval under the cover of consultation.

It also says the so-called "war on terror" had been a failure because everyone could see the world was not a safer place.

"The approach of continuously ramping up laws, lowering legal standards, spending more on defence and intelligence agencies is not working."